Eskom meets with 70 private institutions about the electricity crisis

Power Utility Eskom met the chief executives and top leaders of 70 private institutions on Friday (July 29) to discuss possible solutions to the energy crisis.

“The aim of the discussions was to identify initiatives where the parties can work together and plant the seeds of opportunity to harness private sector investment capacity and reap the low-hanging fruit in the electricity sector,” said Eskom CEO Andre the Rider.

The chief executive shared Eskom’s strategy to address energy supply security by increasing capacity and reducing demand.

He called on business leaders to coordinate efforts to support the strategy by pursuing opportunities to make investments and realize savings benefits from the electricity sector reforms, as announced by President Cyril Ramaphosa.

The president announced measures to end the country’s power crisis on Monday, Bloomberg reported.

The state scrapped a 100-megawatt limit on plants, allowing companies to build power plants of any size without a license to meet their own needs and sell it to the grid.

The government also doubled the purchase of renewable energy to 5,200 megawatts.

A move that will accelerate the country’s shift from a reliance on coal for more than 80% of its power to harnessing the nation’s abundant wind and solar resources, Bloomberg said.

During the meeting on Friday, four areas were identified where business could make practical contributions to a sustainable electricity supply, Eskom said.

This included:

  • Opportunities to invest in own-generation projects and Independent Power Producers (IPPs) through land leasing and wheel arrangements.
  • Encourage the economical use of electricity
  • Provide support for security interventions to protect electricity infrastructure against vandalism and theft
  • Contribute to the development and coordination of enabling policies related to the Fiscal and environmental, energy, and industrial sectors

President Ramaphosa’s plan literally opens the door for investors and entrepreneurs to provide solutions that can have many other indirect and positive impacts for our country, especially when it comes to job creation,” said Leila Fourie, CEO of JSE.

Eskom debt

South Africa’s plan to take over part of Eskom’s R396 billion debt is in the “right direction” because the power company is “too big to fail”, Mike Brown, chief executive of Nedbank Group.

South Africa’s Treasury is finalizing a plan to take over some of the utility’s debt to put the struggling electricity company on a sustainable footing, said Duncan Pieterse, head of asset and liability management at the National Treasury. in an interview Wednesday, as reported by Bloomberg.

That helped lower the company’s bond yields.

“It makes absolute sense to move some of Eskom’s unsustainable debt onto the government balance sheet,” Brown said in an interview in Johannesburg on Friday. “Because in every economic sense it is already there.”

“Electricity supply is a binding constraint on growth and employment, hence the president’s plan to fix that,” Brown said.

To read: Expect a massive electricity price hike to fund Ramaphosa’s energy plan: report

Eskom meets with 70 private institutions about the electricity crisis

Source link Eskom meets with 70 private institutions about the electricity crisis

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